A federal judge has halted the Federal Trade Commission’s investigation into Media Matters, issuing a temporary order that puts a stop to the agency’s actions while the case unfolds.
Back in 2023, Media Matters, a left-leaning watchdog, revealed that ads from major brands were being displayed alongside antisemitic and other objectionable content on X, Elon Musk’s social media platform. As a result, many prominent advertisers decided to pause their spending on the platform. In response, X filed a lawsuit against Media Matters, accusing the organization of wrongdoing. Additionally, X took legal action against several advertisers and industry groups, alleging a “systematic illegal boycott.”
Following Donald Trump’s return to the White House in January, the FTC initiated a review to investigate whether Media Matters had engaged in unlawful coordination with advertisers. The agency requested documents related to Media Matters’ reporting activities and its communication with brands.
According to a report by TechCrunch, U.S. District Judge Sparkle L. Sooknanan ruled in favor of Media Matters on Friday, putting a pause on the FTC’s investigation and stating that the organization is likely to succeed on First Amendment grounds.
Judge Sooknanan, who was appointed by President Biden to the U.S. District Court for the District of Columbia, characterized Media Matters’ actions as protected First Amendment activities and criticized the FTC’s extensive demands as a form of retaliation.
In her decision, she expressed concern over government retaliation against individuals or organizations engaged in constitutionally protected public discourse, particularly those involved in journalism and reporting.
She also referenced past statements made by Andrew Ferguson, the chair of the FTC, regarding scrutiny of progressive groups that combat online misinformation, as well as the hiring of former staffers who had publicly commented on Media Matters.
Media Matters Layoffs and WFA Response to X Litigation
Regardless of the outcome of the legal proceedings, X’s legal tactics have already had repercussions on the entities it targeted. Media Matters has downsized its staff, with one displaced researcher now running for Congress. The World Federation of Advertisers has halted a brand-safety initiative and warned members about potential financial strain.
Recently, the WFA informed its members that it was suspending activities for its Global Alliance for Responsible Media following a lawsuit filed by X alleging antitrust violations. WFA CEO Stephan Loerke assured members that the organization would defend against X’s claims in court and reaffirmed their commitment to competition rules.
Just days before the WFA’s announcement, X filed a lawsuit in Texas accusing GARM participants of colluding to withhold advertising revenue from Twitter, now known as X. The complaint named several major companies, including Unilever, Mars, CVS, and Ørsted.
Judge Sooknanan noted that the FTC’s investigation had achieved its intended outcome, leading Media Matters to refrain from pursuing certain stories related to the FTC, Chairman Ferguson, and Elon Musk.